The couple and Katona's four children will now apparently move into a much smaller house while she deals with her financial issues.

She has reportedly told friends that she aims to "get back on her feet" before getting married to the rugby player.

Katona was dropped as the face of payday loan company Cash Lady after being declared bankrupt for a second time last week.

"Kerry decided she could not afford the wedding," a source said. "She is also keen not to be seen living it up and is aware that hosting a ­wedding where celebrities would be quaffing champagne would not look outrageous after the bankruptcy.

"So they have decide to wait until things improve and they are likely to get married next year. The TV channels pulled out because of their budgets, so without then it couldn't really go ahead as planned.

"Then she spoke to George who was gutted, but understood and has been really supportive.

"The wedding would have only been 40 to 50 people and would have been at their house, but they have to be seen to be ­responsible."

In terms of how Katona aims to raise funds, the source added: "Kerry is actually relieved this is all out in the open. She has work ­coming up and will soon be back on an even keel financially.

"She knows she has to be more careful in future to avoid getting into this sort of mess again".